**Exhibit 20.1**

** **

 

 

222 Lakeview Avenue, Suite 1500, West Palm Beach, FL 33401

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***NEWS RELEASE***

 

**TODHUNTER INTERNATIONAL, INC., ANNOUNCES FINANCIAL RESULTS**

**FOR FISCAL 2003 THIRD QUARTER AND NINE MONTHS ENDED JUNE 30,2003**

 

WEST PALM BEACH,FLORIDA—August 14, 2003—Todhunter International, Inc. (AMEX: THT), a leadingdistiller of rum and brandy, and importer and marketer of premium brandedspirits, today reported financial results for fiscal 2003 third quarter andnine months ended June 30, 2003.

 

Net sales for fiscal2003’s third quarter were $23,087,731 compared with $25,933,310 reported forfiscal 2002’s third quarter. Gross profit was $8,064,736 compared to $8,644,167in the same period last year and third-quarter net income was $1,892,432, or$0.34 per diluted share, compared with net income of $1,754,946, or $0.31 perdiluted share, one year ago.

 

For the nine-monthperiod, net sales were $65,876,955 versus $72,744,888 in the comparable periodlast year. Gross profit for the nine-month period was $21,453,113 compared to$23,342,157  and net income for thenine-month period was $1,828,042 compared to net income of $4,970,535 reportedfor last year’s nine-month period. Net income per diluted share was $0.32versus earnings per diluted share of $0.88 a year ago.

 

 

Commenting on theresults, Jay S. Maltby, Chairman and Chief Executive Officer said, “Althoughnet sales, gross profit and operating income for the nine-month period wereprimarily affected by decreased volume in our bottling operations, we haverecently implemented a plan to consolidate our bottling operations to increaseefficiencies and reduce overhead in the future.  We expect to realize cost savings beginning in the first quarterof fiscal 2004, with these cost savings increasing in the second, third andfourth quarters of fiscal 2004.  Alsoaffecting our operating results was an increase in selling and marketingexpenses related to our Cruzan Rum brand as we continue to invest aggressivelyin our brand promoting activities.  Wefeel the

 

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continued investment inour marketing activities is warranted based on our continued success in growingthe Cruzan Rum brand.”

 

The Chairman alsoreported that, “Due to the retirement of our former Chairman and ChiefExecutive Officer, and our former Chief Financial Officer, the Company recordeda one-time charge of approximately $1.5 million before income taxes during thefirst quarter of fiscal 2003, and approximately $0.2 million during the thirdquarter of fiscal 2003, respectively.”

 

Forpurposes of providing relevant information to investors, management considersthe following factors to be important in comparing the results of operationswith the prior year: in 2002, net sales included $1.9 million of bulk tequilasales, and $1.2 million of new Cruzan ready-to-drink products.  These sales are considered by management tobe non-recurring.  Also, as discussedabove, the Company recorded approximately $1.7 million in one-time chargesrelated to the retirement of certain executive officers.

 

TodhunterInternational, Inc., is a major supplier of rum, brandy and wine to thebeverage alcohol industry. The Company also produces vinegar, otheralcohol-related products and handcrafted ultra-premium single-barrel aged rumsand tropical rums. Todhunter produces and distributes the Cruzan line of rumsfrom the Virgin Islands.

 

Statementscontained in this press release, other than historical facts, are“forward-looking statements” within the meaning of Section 27A of theSecurities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.Todhunter intends that such forward-looking statements shall be subject to thesafe harbors created thereby. These statements involve various risks anduncertainties, including without limitation those contained in the sectionentitled “Forward-Looking Statements” in Todhunter’s Annual Report on Form 10-Kfor the fiscal year ended September 30, 2002. As a result, future results maydiffer materially from the expected results represented by the forward-lookingstatements contained in this press release.

 
| Contact: | Jay S. Maltby, Chairman and Chief Executive Officer |
|----------|-----------------------------------------------------|
|     | William J. Viggiano, Controller                     |
|     | (561) 655-8977                                      |

*—FinancialResults Follow—*

* *

 

 

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| **TODHUNTER  INTERNATIONAL, INC.**    |   |              |       |          |   |                     |   |     |   |
|--------------------------------------------|--------|-------------------|------------|---------------|--------|--------------------------|--------|----------|--------|
| **Statements of Income**                   |   |              |       |          |   | **Statement  of Income** |   |
|                                       |   |              |       |          |   | **as a% of**             |   |
|                                       |   | **Three  Months** |       | **Net Sales** |   |
| **Periods ended June 30,**                 |   | **2003**          |       | **2002**      |   | **2003**                 |   | **2002** |   |
|                                       |   |              |       |          |   |                     |   |     |   |
| Net sales                                  |   | $                 | 23,087,731 |          | $      | 25,933,310               |   | 100.0    | %      | 100.0 | % |
| Cost of sales                              |   | 15,022,995        |       | 17,289,143    |   | 65.1                     | %      | 66.7     | %      |
|                                       |   |              |       |          |   |                     |   |     |   |
| Gross profit                               |   | 8,064,736         |       | 8,644,167     |   | 34.9                     | %      | 33.3     | %      |
| Selling,  general  and administrative |   | 6,305,257         |       | 5,778,418     |   | 27.3                     | %      | 22.3     | %      |
|                                       |   |              |       |          |   |                     |   |     |   |
| Operating income                           |   | 1,759,479         |       | 2,865,749     |   | 7.6                      | %      | 11.1     | %      |
| Interest expense                           |   | (985,150          | )          | (649,550      | )      | -4.3                     | %      | -2.5     | %      |
| Other income,  net                         |   | 398,946           |       | 168,014       |   | 1.7                      | %      | 0.6      | %      |
|                                       |   |              |       |          |   |                     |   |     |   |
| Income before  income taxes                |   | 1,173,275         |       | 2,384,213     |   | 5.1                      | %      | 9.2      | %      |
| Income tax  (expense) benefit              |   | 719,157           |       | (629,267      | )      | 3.1                      | %      | -2.4     | %      |
|                                       |   |              |       |          |   |                     |   |     |   |
| Net income                                 |   | $                 | 1,892,432  |          | $      | 1,754,946                |   | 8.2      | %      | 6.8 | % |
|                                       |   |              |       |          |   |                     |   |     |   |
| Earnings per  common share:                |   |              |       |          |   |                     |   |     |   |
| Basic                                      |   | $                 | 0.34       |          | $      | 0.32                     |   |     |   |   |   |
| Diluted                                    |   | $                 | 0.34       |          | $      | 0.31                     |   |     |   |   |   |
|                                       |   |              |       |          |   |                     |   |     |   |
| Common shares  and equivalents outstanding |   |              |       |          |   |                     |   |     |   |
| Basic                                      |   | 5,574,322         |       | 5,528,558     |   |                     |   |     |   |
| Diluted                                    |   | 5,647,923         |       | 5,661,247     |   |                     |   |     |   |
| Shares  outstanding at end of period       |   | 5,576,234         |       | 5,549,234     |   |                     |   |     |   |
|                                       |   |              |       |          |   |                     |   |     |   |

 

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| **TODHUNTER  INTERNATIONAL, INC.**    |   |             |       |          |   |                     |   |
|--------------------------------------------|--------|------------------|------------|---------------|--------|--------------------------|--------|
| **Statements of Income**                   |   |             |       |          |   | **Statement  of Income** |   |
|                                       |   |             |       |          |   | **as a% of**             |   |
|                                       |   | **Nine  Months** |       | **Net Sales** |   |
| **Periods ended June 30,**                 |   | **2003**         |       | **2002**      |   | **2003**                 |   | **2002** |   |
|                                       |   |             |       |          |   |                     |   |   |   |
| Net sales                                  |   | $                | 65,876,955 |          | $      | 72,744,888               |   | 100.0 | % | 100.0 | % |
| Cost of sales                              |   | 44,423,842       |       | 49,402,731    |   | 67.4                     | %      | 67.9 | % |
|                                       |   |             |       |          |   |                     |   |   |   |
| Gross profit                               |   | 21,453,113       |       | 23,342,157    |   | 32.6                     | %      | 32.1 | % |
| Selling, general  and administrative       |   | 17,392,479       |       | 15,592,695    |   | 26.4                     | %      | 21.4 | % |
|                                       |   |             |       |          |   |                     |   |   |   |
| Operating income                           |   | 4,060,634        |       | 7,749,462     |   | 6.2                      | %      | 10.7 | % |
| Interest expense                           |   | (2,583,583       | )          | (2,070,276    | )      | -3.9                     | %      | -2.8 | % |
| Other income  (expense), net               |   | (467,550         | )          | 943,866       |   | -0.7                     | %      | 1.3 | % |
|                                       |   |             |       |          |   |                     |   |   |   |
| Income before  income taxes                |   | 1,009,501        |       | 6,623,052     |   | 1.5                      | %      | 9.1 | % |
| Income tax  (expense) benefit              |   | 818,541          |       | (1,652,517    | )      | 1.2                      | %      | -2.3 | % |
|                                       |   |             |       |          |   |                     |   |   |   |
| Net income                                 |   | $                | 1,828,042  |          | $      | 4,970,535                |   | 2.8 | % | 6.8 | % |
|                                       |   |             |       |          |   |                     |   |   |   |
| Earnings per  common share:                |   |             |       |          |   |                     |   |   |   |
| Basic                                      |   | $                | 0.33       |          | $      | 0.90                     |   |   |   |   |   |
| Diluted                                    |   | $                | 0.32       |          | $      | 0.88                     |   |   |   |   |   |
|                                       |   |             |       |          |   |                     |   |   |   |
| Common shares  and equivalents outstanding |   |             |       |          |   |                     |   |   |   |
| Basic                                      |   | 5,572,608        |       | 5,518,675     |   |                     |   |   |   |
| Diluted                                    |   | 5,639,825        |       | 5,631,189     |   |                     |   |   |   |
|                                       |   |             |       |          |   |                     |   |   |   |
| Shares outstanding  at end of period       |   | 5,576,234        |       | 5,549,234     |   |                     |   |   |   |
|                                       |   |             |       |          |   |                     |   |   |   |

 

* *

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TODHUNTER INTERNATIONAL, INC.

Condensed Consolidated Balance Sheets

 
|                                             |   |         |        |               |   | **Balance  Sheet** |   |
|--------------------------------------------------|--------|--------------|-------------|--------------------|--------|--------------------|--------|
|                                             |   |         |        |               |   | **as a% of**       |   |
|                                             |   |         |        |               |   | **Total  Assets**  |   |
|                                             |   | **June 30,** |        | **September  30,** |   | **June 30,**       |   | **September  30,** |   |
|                                             |   | **2003**     |        | **2002**           |   | **2003**           |   | **2002** |   |
|                                             |   |         |        |               |   |               |   |   |   |
| ASSETS                                           |   |         |        |               |   |               |   |   |   |
| CURRENT ASSETS                                   |   |         |        |               |   |               |   |   |   |
| Cash and  short-term investments                 |   | $            | 17,607,643  |               | $      | 17,343,769         |   | 12.48 | % | 12.58 | % |
| Receivables                                      |   | 16,418,647   |        | 16,202,480         |   | 11.64              | %      | 11.75 | % |
| Inventories                                      |   | 32,442,963   |        | 27,854,925         |   | 22.99              | %      | 20.20 | % |
| Other current  assets                            |   | 4,941,106    |        | 5,188,602          |   | 3.50               | %      | 3.76 | % |
| Total current  assets                            |   | 71,410,359   |        | 66,589,776         |   | 50.61              | %      | 48.29 | % |
|                                             |   |         |        |               |   |               |   |   |   |
| PROPERTY AND  EQUIPMENT, net                     |   | 40,807,245   |        | 42,185,217         |   | 28.92              | %      | 30.60 | % |
| OTHER ASSETS                                     |   | 28,869,912   |        | 29,107,511         |   | 20.46              | %      | 21.11 | % |
| Total assets                                     |   | $            | 141,087,516 |               | $      | 137,882,504        |   | 100.00 | % | 100.00 | % |
|                                             |   |         |        |               |   |               |   |   |   |
| LIABILITIES AND  STOCKHOLDERS’ EQUITY       |   |         |        |               |   |               |   |   |   |
| CURRENT  LIABILITIES                             |   |         |        |               |   |               |   |   |   |
| Current  maturities of long-term debt            |   | $            | 4,000,000   |               | $      | 4,000,000          |   | 2.84 | % | 2.90 | % |
| Accounts payable                                 |   | 7,949,135    |        | 4,051,379          |   | 5.63               | %      | 2.94 | % |
| Other accrued  expenses                          |   | 3,041,682    |        | 3,223,293          |   | 2.16               | %      | 2.34 | % |
| Total current  liabilities                       |   | 14,990,817   |        | 11,274,672         |   | 10.63              | %      | 8.18 | % |
|                                             |   |         |        |               |   |               |   |   |   |
| LONG-TERM DEBT,  less current maturities         |   | 49,900,206   |        | 53,017,009         |   | 35.37              | %      | 38.45 | % |
|                                             |   |         |        |               |   |               |   |   |   |
| DEFERRED INCOME  TAXES                           |   | 5,033,250    |        | 4,710,000          |   | 3.57               | %      | 3.42 | % |
|                                             |   |         |        |               |   |               |   |   |   |
| OTHER  LIABILITIES                               |   | 2,233,337    |        | 1,811,459          |   | 1.58               | %      | 1.31 | % |
|                                             |   |         |        |               |   |               |   |   |   |
| STOCKHOLDERS’  EQUITY                       |   | 68,929,906   |        | 67,069,364         |   | 48.86              | %      | 48.64 | % |
| Total  liabilities and stockholders’ equity |   | $            | 141,087,516 |               | $      | 137,882,504        |   | 100.00 | % | 100.00 | % |

 

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